If you are considering a workers’ compensation lump sum settlement, it is crucial to consult the experienced workers’ compensation lawyers at Nikolaus & Hohenadel. By accepting a lump sum settlement, you may forfeit your right to future compensation. Further, insurers frequently attempt to settle claims for far less than fair value. We will help you weigh the pros and cons of a lump sum settlement and make sure you receive the maximum compensation you deserve.
What is a lump sum settlement in Pennsylvania?
In Pennsylvania, a workers’ comp settlement is referred to as a “compromise and release” agreement. It is a lump sum payment in exchange for a release of benefits. It can be a release of wage, medical or specific loss benefits. You should know that agreeing to a lump sum settlement means you give up your right to past and/or future benefits. Therefore, if you accept a lump sum payment for all benefits under the Workers comp law you will not receive any other benefits for your work injury. For this reason, you should never negotiate with an insurance company by yourself. It takes a skilled worker’s compensation lawyer to determine if a lump sum settlement is right for you and to help you obtain the full value of your claim.
The Pros & Cons of Accepting A Lump Sum
The pros and cons of a settlement must be carefully weighed. Input and advice from an experienced workers comp lawyer is critical. In some cases, it is in an injured worker’s best interest to settle and part ways with the workers’ comp system and the insurance company. In other cases, it can be a disaster.
Although a lump sum settlement may seem attractive, one-time payment can pose problems, especially for individuals who have trouble managing money. For these individuals, negotiating a structured settlement may be a better option.
In addition, a serious injury can lead to complications that require multiple surgeries or ongoing therapy, the cost of which can be difficult to determine. Workers’ compensation insurers understand these contingencies, however, and know that a lump sum settlement can save them money; insurance companies often put profits ahead of injured workers.
For a worker who has a permanent disability, it is critical to understand that a lump sum settlement closes a claim forever, and an injured worker signs away his or her right to future benefits.
Finally, it is important to note that a lump sum settlement is an agreement among the injured worker, his or her employer, and the workers’ compensation insurance carrier. The agreement must be approved by a judge in the Pennsylvania Workers’ Compensation court. Complicated agreements must be carefully reviewed and signed and a court appearance is necessary to obtain the approval of a judge.
Never discuss settlement of your claim without the advice of an experienced workers comp lawyer. The insurance company has a team of lawyers advising it on a potential settlement. The only way to level the playing field and make the decision that is best for you is to have the advice and experience of workers comp specialist.
How Our Lancaster Workers’ Compensation Attorneys Can Help
With more than 30 years of experience fighting for individuals who have been injured on the job in Central Pennsylvania, our workers’ compensation lawyers can help protect your rights. We will work closely with you to assess the future costs of your injury and determine whether a lump sum settlement is the best option for you. We will eliminate the stress from the process by negotiating the compromise and release agreement and make sure you are treated fairly.
When you become our client, you will have confidence knowing that you are working with an attorney who is certified as a Specialist in Workers’ Compensation Law. We understand the financial challenges you are facing from being out of work, which is why we handle all workers’ comp cases on a contingency basis. This means you will not pay any attorneys’ fees to us until we obtain the benefits you deserve. If you are seeking worker’s compensation benefits or considering a lump sum settlement, contact us today for a free consultation.
We serve clients throughout Central Pennsylvania, including Lancaster, York, Lebanon, and Dauphin Counties and the cities of Lewistown, Harrisburg, Carlisle, and Chambersburg. Se habla Español.